The Portuguese forward had been linked with an emotional return to Manchester United but has settled his differences with the La Liga giants.
But he will instead hope to link up with Gareth Bale should the Welshman completes his protracted, world-record move from Tottenham.
Madrid-based newspaper Marca reports that Ronaldo will earn around £900,000 more each season than Barcelona superstar Lionel Messi, making him the highest-paid player in Spain.
The 28-year-old is believed to have struck a deal with Madrid to increase his share of his image rights which previously stood at 60 per cent.
Ronaldo, who cost Madrid £80million in 2009, met with club president Florentino Perez in Los Angeles and the pair ironed out their differences.
The former United and Sporting Lisbon player had remained coy on his future at a press conference over the weekend.
'The situation still hasn't been resolved and I don't think now is the right time to talk about it,' he said.
'Perhaps we'll be able to give more concrete news about this further down the line but now the only thing in my remit is to train and work.'
Meanwhile, Ronaldo has refused to respond to Jose Mourinho’s latest attempts to rile him – just two days before Madrid go head-to-head with Chelsea.
Blues boss Mourinho belittled his compatriot and mischievously described the former Brazil, Barcelona and Inter Milan striker of the same name as the ‘real’ Ronaldo in an interview with ESPN.
'I was manager for the first time in 2000 but, before that, I was assistant in big clubs and with big managers and coaching the best players in the world, so I was 30 and I was coaching Ronaldo, not this one [Cristiano], the real one, the Brazilian Ronaldo,' Mourinho said.
'I was coaching Rivaldo, I was coaching [Luis] Figo, I was coaching [Pep] Guardiola, I was coaching big players when I was very, very young.
'So, at that time, I was not the manager, I was just an assistant but I was feeling that I had, in my hands, some potential and after that I start my career in the year 2000 and after four years I won my first Champions League and, after that, everything comes as a consequence.'
He also criticised the philosophy at his former club Real. During the interview, he declared: 'Madrid is politics. Madrid is not about football, Madrid is not about sport.'
Nice work: Ronaldo opened the scoring against Everton in a friendly at the weekend
'As we say in Portugal, "I don't spit on the plate I eat on." That's how I feel. I prefer to try and remember the positive side [to Mourinho].'